Carrier Global (CARR) Q2 2026 earnings summary

Executive summary

• Q2 2026 sales reached $6.4 billion, up 4% year-over-year, with organic growth of 3% and strong performance in Americas, Europe, and Asia Pacific; Transportation was flat.

• Adjusted operating profit was $1.1 billion, down 6% year-over-year; adjusted EPS was $0.86, down 7%, while GAAP EPS was $0.60, down 14%.

• Orders surged 40% year-over-year, with Commercial HVAC orders up 65% and data center orders up over 300%, driving record backlog above $8 billion.

• Free cash flow reached $810 million, and $640 million was returned to shareholders via dividends and repurchases.

• Portfolio actions included the acquisition of 75F, completed divestiture of Riello, and announced sale of NORESCO.

Financial highlights

• Q2 2026 net sales: $6.4 billion (+4% YoY); adjusted operating profit: $1.1 billion (-6% YoY); adjusted EPS: $0.86 (-7% YoY).

• Adjusted operating margin was 17.2%, down 190 bps year-over-year.

• Free cash flow was $810 million; capital expenditures for Q2 were $117 million.

• Net debt stood at $10.6 billion as of June 30, 2026.

• Gross margin for Q2 was 27.2%, down 170 bps year-over-year.

Outlook and guidance

• Full-year 2026 sales guidance raised to ~$23 billion, with organic growth in the mid- to high-single digits.

• Adjusted operating profit guidance increased to ~$3.5 billion and adjusted EPS to ~$2.90.

• Data center revenue outlook raised to ~$2 billion for FY 2026, with capacity expansion planned for 2027 and beyond.

• Free cash flow guidance maintained at ~$2 billion.

• Guidance includes ~$0.05 adjusted EPS impact from NORESCO exit and new U.S. factory costs.